Real estate manager AEW has acquired a last-mile distribution centre located in Germany on behalf of a German separate account.

AEW said it has paid an undisclosed amount to buy the 24,200sqm distribution centre located in Erfurt from Munich based developer GIEAG.

The recently completed asset is fully let to an American online retailer on a long term lease agreement.

AEW said the strategy for the mandate focuses on building a core logistics portfolio in key logistics hubs across Germany. This is the third acquisition for the mandate over the past nine months and is in line with its strategy to deliver a sustainable dividend yield.

Marc Langenbach, head of funds and separate accounts Germany at AEW, said: “In just nine months, we have created a high-quality portfolio of logistics assets in central distribution hubs across Germany benefitting from the network of our well-established German platform.

“The existing portfolio is strongly aligned to the investment strategy for this mandate and we have a healthy pipeline of opportunities that we are monitoring as we continue to deploy the remaining equity on behalf of our client.”